INTRODUCTIO

N
TO
OPERATIONS M
ANAGEMENT
SHEILA MAE G. LACE
RONA

GOOD
S

SERVICES

ORGANIZATI
FINAN OPERATI MARKE
ON
ONS
CE
TING
Securing financial reso

Producing the good

Assessing consumer w

urces and allocating th

s or providing the se

ants and needs, and s

rvices offered by the

elling and promoting t

ose resources through

out the organization

organization

he organizations goo
ds/services

Operations mana
gement

Management of systems or processes that create goods or service

s.

Supply Chain
A sequence of activities and organizations involv
ed in producing and delivering goods and servic
es.

Suppli
ers
supplie
r
Supply
Chain

Direct
supplie
r

Produc
er

Final
Custo
mer

Distribu
tor

The essence of the operations function is to add value during the production process

Value added
The difference between the cost of inputs and t
he value or price of outputs.

Product
ion of g Delivery
VS
oods
of prod

The differences involve the ff.

Degree of customer contact.

Quality assurance.

Uniformity of input and output.

Amount of inventory.

Level of productivity.

Evaluation of work.

Production and delivery.

Ability to patent design.

10

1
0

PROCESS
MANAGEMEN
T
Key aspect of operations
management and
central role of all
management

Process
- One or more actions t
hat transform inputs into
outputs.

Categories of business
processes
Upper-management processe
s
Govern the operations of the entire organization.

Operational processes
Core processes that make up the value stream.

Supporting processes
Support the core processes.

11

Managing a Process to Meet

Demand
Ideally, the capacity of a process will be such that its outpu
t just matches demand.

13

Proce
ss
Variati
on

Variety of goods or services being offered

The greater the variety of goods and services , the greater the
variation in production process.

Structural Variation in demand

Trends and seasonal variation that are important in capacity
planning.

Random variation
Present to some extent in all processes, cannot generally be i
nfluenced by managers.

Assignable variation
Can be reduced or eliminated by analysis and corrective acti
ons.

1
4

SCOPE OF
OPERATIO
NS MANA
GEMENT

The scope of operations management

ranges across the organization. This in
volves product and service design, pro
cess selection, selection and manage
ment of technology, design of work sys
tems, location planning, facilities plan
ning, and quality improvement of the o
rganizations products and services.

t
a
Th s!
k
l
fo

l
l
a

THANK YO
U !!